While Oklahoma has one of the highest active and retired military populations in the nation, it has been ranked as one of the least tax-friendly states for military retirees.

Sen. Adam Pugh, R-Edmond, believes one way to help make Oklahoma more attractive to military veterans is to eliminate the income tax on their retirement.

With Senate Bill 401, Oklahoma would join 30 other states in exempting military retirement from state income tax.

Currently, retired servicemembers in Oklahoma may deduct the greater of $10,000 or 75% of their retirement income from state income tax.

While nine states have no income tax including Texas, 21 others have exempted military retirement pay from state income taxes–among those are bordering states Arkansas, Kansas and Missouri. 

The only other states in the region to tax military pensions are New Mexico and Colorado.

  According to the Oklahoma Department of Veterans Affairs (ODVA), Oklahoma is home to more than 36,000 retired veterans.

In November, Kiplinger ranked Oklahoma as being the eighth worst tax-friendly state for military retirees in the nation behind California, Vermont, Washington, D.C., Arizona, Montana and New Mexico.